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UPDATE 1-BHP Billiton says costs of Elliott restructure plan outweigh benefits

Published 12/04/2017, 02:23 pm
Updated 12/04/2017, 02:30 pm
© Reuters.  UPDATE 1-BHP Billiton says costs of Elliott restructure plan outweigh benefits
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* BHP rejects Elliott overhaul proposal

* Not in long-term interest of shareholders -BHP CEO

* Elliott pushing for corporate structure change, oil spin-off (Adds context)

SYDNEY, April 12 (Reuters) - Anglo-Australian miner BHP Billiton BHP.AX BLT.L on Wednesday dismissed a wide-ranging proposal by shareholder Elliott Advisors to overhaul its corporate strategy and sell off oil interests, saying the measures would not benefit the firm.

"The elements of the Elliott proposal as described to the board would not be in the long-term interest of shareholders. The costs would significantly outweigh the benefits." BHP Chief Executive Officer Andrew Mackenzie said on an analyst call.

His comments came as BHP released a detailed response two days after U.S.-based Elliott made public a letter to the miner's directors urging them to consider spinning off the U.S. oil arm, while returning more cash to investors.

Elliott, which said it holds a "long economic interest" of about 4.1 percent of London-listed BHP Billiton PLC, also wants the miner to ditch its dual corporate structure and replace it with a single company domiciled in Britain.

Under the Elliott plan, BHP would have a primary share-market listing in London and a secondary listing in Sydney.

The Australian government on Tuesday said any significant changes to BHP's corporate structure would need to be consistent with a "national interest" test under the law. the last decade, BHP has examined the prospect of changing its corporate structure and spinning off its oil business but has ultimately rejected the ideas.

Elliott, an activist hedge fund, has also lobbied for change at other firms including Samsung Electronics Co Ltd 005930.KS , Akzo Nobel NV AKZO.AS and SABMiller (LON:SAB) SABXSH.UL .

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